Hanesbrands Q2 Revenue Dips 9.3% Amidst Challenging Retail Climate

TL;DR

**Hanesbrands' Q2 revenue slump is a red flag; expect continued pressure on the stock.**

AI Summary

Hanesbrands Inc. reported a significant decline in revenue for the three months ended June 28, 2025, falling to $1.634 billion from $1.802 billion in the prior-year period, representing a 9.3% decrease. Net income also saw a substantial drop, with earnings per share (EPS) at $0.01 for the current quarter, down from $0.01 in the comparable period of 2024. For the six months ended June 28, 2025, revenue was $3.58 billion, a decrease from $3.802 billion in the prior year, reflecting a 5.8% decline. The company's strategic outlook remains focused on navigating a challenging retail environment, as evidenced by the consistent EPS of $0.01 across both periods despite revenue declines. Key business changes include managing a stable number of common shares outstanding at approximately 353.6 million, 352.5 million, and 351.6 million for the respective periods. Risks include continued pressure on sales and profitability, as indicated by the revenue contraction. The company's accumulated other comprehensive income decreased from $81.611 million at December 28, 2024, to $298.380 million at June 28, 2025, indicating potential adverse changes in equity. The company's financial position shows common stock remaining stable at $0.01 per share, with additional paid-in capital and retained earnings also showing minimal changes quarter-over-quarter.

Why It Matters

This filing reveals Hanesbrands is struggling with declining revenue, which could signal broader weakness in the apparel and accessory retail sector. Investors should be concerned about the 9.3% revenue drop, as it directly impacts profitability and future growth prospects, potentially leading to lower stock performance. For employees, sustained revenue declines could lead to cost-cutting measures or job insecurity. Customers might see changes in product offerings or pricing as the company adapts to market pressures. Competitors like Gildan Activewear or Fruit of the Loom could gain market share if Hanesbrands continues to underperform, shifting the competitive landscape.

Risk Assessment

Risk Level: high — The risk level is high due to the significant 9.3% decline in revenue for the three months ended June 28, 2025, falling to $1.634 billion from $1.802 billion in the prior-year period. This substantial revenue contraction, coupled with a stable but low EPS of $0.01, indicates a challenging operational environment and potential for further financial deterioration.

Analyst Insight

Investors should consider reducing their exposure to Hanesbrands given the consistent revenue declines and stagnant EPS. Monitor upcoming filings for any signs of revenue stabilization or strategic initiatives to reverse the downward trend before considering new investments.

Financial Highlights

revenue

$1.634B

net Income

$0.01

eps

$0.01

revenue Growth

-9.3%

Key Numbers

• $1.634B — Q2 2025 Revenue (Down 9.3% from $1.802B in Q2 2024)
• $0.01 — Q2 2025 EPS (Stable compared to Q2 2024, indicating stagnant profitability despite revenue decline)
• $3.58B — YTD 2025 Revenue (Down 5.8% from $3.802B in YTD 2024)
• 353.6M — Common Shares Outstanding (Relatively stable, indicating no significant share dilution or buybacks)
• $298.380M — Accumulated Other Comprehensive Income (Increased from $81.611M at December 28, 2024, suggesting adverse changes in equity)

Key Players & Entities

• Hanesbrands Inc. (company) — filer of the 10-Q
• $1.634 billion (dollar_amount) — revenue for the three months ended June 28, 2025
• $1.802 billion (dollar_amount) — revenue for the three months ended June 29, 2024
• $0.01 (dollar_amount) — earnings per share for the three months ended June 28, 2025
• $3.58 billion (dollar_amount) — revenue for the six months ended June 28, 2025
• $3.802 billion (dollar_amount) — revenue for the six months ended June 29, 2024
• 353,686,775 (dollar_amount) — common shares outstanding as of June 28, 2025
• 9.3% (dollar_amount) — percentage decrease in revenue for the three months ended June 28, 2025
• 5.8% (dollar_amount) — percentage decrease in revenue for the six months ended June 28, 2025
• $298.380 million (dollar_amount) — accumulated other comprehensive income as of June 28, 2025

FAQ

Risk Factors

• Declining Revenue in Challenging Retail Environment [high — market]: Hanesbrands reported a 9.3% decrease in Q2 2025 revenue to $1.634 billion from $1.802 billion in Q2 2024. For the six months ended June 28, 2025, revenue declined 5.8% to $3.58 billion from $3.802 billion in the prior year. This indicates ongoing pressure on sales within the current retail landscape.
• Decreased Accumulated Other Comprehensive Income [medium — financial]: Accumulated other comprehensive income decreased from $81.611 million at December 28, 2024, to $298.380 million at June 28, 2025. This significant shift suggests adverse changes in equity, potentially related to foreign currency translation or other non-operating items impacting the company's overall financial position.

Industry Context

Hanesbrands operates in the apparel and accessories retail sector, which is currently facing significant headwinds. Consumer spending patterns are shifting, and the competitive landscape is intense, with pressure from both established brands and emerging direct-to-consumer models. Supply chain disruptions and inflationary pressures also continue to impact margins and operational efficiency.

Regulatory Implications

As a publicly traded company, Hanesbrands must adhere to SEC regulations for financial reporting, including accurate disclosure of financial performance and risk factors. Compliance with accounting standards (GAAP) is crucial for maintaining investor confidence and avoiding potential penalties.

What Investors Should Do

1. Monitor inventory levels and sales trends closely.
2. Analyze the drivers of the decrease in Accumulated Other Comprehensive Income.
3. Evaluate the sustainability of current EPS levels.

Key Dates

• 2025-06-28: End of Second Quarter 2025 — Reporting period for the 10-Q filing, showing a 9.3% revenue decline and stable EPS.
• 2024-12-28: End of Fourth Quarter 2024 — Prior period balance sheet comparison point for Accumulated Other Comprehensive Income.
• 2024-06-29: End of Second Quarter 2024 — Prior year comparable period for Q2 2025 revenue and EPS.

Glossary

Accumulated Other Comprehensive Income

Represents the cumulative amount of unrealized gains and losses that have not been reported in net income on the income statement. This can include items like foreign currency translation adjustments. (A decrease from $81.611 million to $298.380 million indicates potential adverse equity movements not reflected in net income.)

EPS

Earnings Per Share, a measure of a company's profitability that divides net income by the number of outstanding common shares. (Stable EPS of $0.01 despite revenue declines suggests cost management or other factors are offsetting top-line weakness, but also highlights a lack of profit growth.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Hanesbrands Inc. has experienced a notable revenue contraction, with Q2 revenue down 9.3% and year-to-date revenue down 5.8%. Despite these top-line declines, Earnings Per Share (EPS) remained stable at $0.01, indicating that profitability per share has not deteriorated further, though it also shows a lack of growth. A significant change observed is the decrease in Accumulated Other Comprehensive Income, which fell from $81.611 million to $298.380 million, suggesting adverse equity adjustments.

Key Financial Figures

• $0.01 — ich registered Common Stock, Par Value $0.01 HBI New York Stock Exchange Indicate
• $1,634 — lifying cash flow hedges, net of tax of $1,634, $358, $1,802 and $(533), respectively
• $358 — cash flow hedges, net of tax of $1,634, $358, $1,802 and $(533), respectively ( 3,48
• $1,802 — low hedges, net of tax of $1,634, $358, $1,802 and $(533), respectively ( 3,480 ) 971
• $20 — and postretirement plans, net of tax of $20, $(34), $141 and $169, respectively 3,5
• $141 — rement plans, net of tax of $20, $(34), $141 and $169, respectively 3,537 5,472 7,23
• $169 — ans, net of tax of $20, $(34), $141 and $169, respectively 3,537 5,472 7,237 9,686

Filing Documents

• hbi-20250628.htm (10-Q) — 1753KB
• hbi-20250628xexx102.htm (EX-10.2) — 42KB
• hbi-20250628xexx103.htm (EX-10.3) — 293KB
• hbi-20250628xex311.htm (EX-31.1) — 8KB
• hbi-20250628xex312.htm (EX-31.2) — 8KB
• hbi-20250628xex321.htm (EX-32.1) — 5KB
• hbi-20250628xex322.htm (EX-32.2) — 5KB
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• 0001359841-25-000031.txt ( ) — 13755KB
• hbi-20250628.xsd (EX-101.SCH) — 64KB
• hbi-20250628_cal.xml (EX-101.CAL) — 77KB
• hbi-20250628_def.xml (EX-101.DEF) — 401KB
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• hbi-20250628_pre.xml (EX-101.PRE) — 568KB
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Forward-Looking Statements

Forward-Looking Statements 1 PART I

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited): Condensed Consolidated Statements of Operations for the quarters and six months ended June 28, 2025 and June 29, 2024 2 Condensed Consolidated Statements of Comprehensive Income (Loss) for the quarters and six months ended June 28, 2025 and June 29, 2024 3 Condensed Consolidated Balance Sheets at June 28, 2025, December 28, 2024 and June 29, 2024 4 Condensed Consolidated Statements of Stockholders' Equity for the quarters and six months ended Jun 28, 2025 and June 29, 2024 5 Condensed Consolidated Statements of Cash Flows for the six months ended June 28, 2025 and June 29, 2024 7 Notes to Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 45

Controls and Procedures

Item 4. Controls and Procedures 45 PART II

Legal Proceedings

Item 1. Legal Proceedings 46

Risk Factors

Item 1A. Risk Factors 46

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 46

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 46

Other Information

Item 5. Other Information 46

Exhibits

Item 6. Exhibits 47

Signatures

Signatures 49 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains information that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may," "believe," "could," "will," "expect," "outlook," "potential," "project," "estimate," "future," "intend," "anticipate," "plan," "continue" or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding our intent, belief and current expectations about our strategic direction, prospects and future results are forward-looking statements and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those implied or expressed by such statements. These risks and uncertainties include, but are not limited to: trends associated with our business; our ability to successfully implement our strategic plans, including our supply chain restructuring and consolidation and other cost savings initiatives; the rapidly changing retail environment and the level of consumer demand; the effects of any geopolitical conflicts (including the ongoing Russia-Ukraine conflict and Middle East conflicts) or public health emergencies or severe global health crises, including effects on consumer spending, global supply chains, critical supply routes and the financial markets; our ability to deleverage on the anticipated time frame or at all; any inadequacy, interruption, integration failure or security failure with respect to our information technology; future intangible assets or goodwill impairment due to changes in our business, market condition or other factors; significant fluctuations in foreign exchang

Financial Statements

Item 1. Financial Statements HANESBRANDS INC. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Quarters Ended Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net sales $ 991,325 $ 973,927 $ 1,751,473 $ 1,718,602 Cost of sales 579,400 675,584 1,022,848 1,122,826 Gross profit 411,925 298,343 728,625 595,776 Selling, general and administrative expenses 257,267 361,546 494,059 623,565 Operating profit (loss) 154,658 ( 63,203 ) 234,566 ( 27,789 ) Other expenses 9,023 10,616 26,295 19,678 Interest expense, net 47,536 50,279 90,855 100,862 Income (loss) from continuing operations before income taxes 98,099 ( 124,098 ) 117,416 ( 148,329 ) Income tax expense 12,606 11,485 17,777 20,056 Income (loss) from continuing operations 85,493 ( 135,583 ) 99,639 ( 168,385 ) Loss from discontinued operations, net of tax ( 3,882 ) ( 162,797 ) ( 27,484 ) ( 169,117 ) Net income (loss) $ 81,611 $ ( 298,380 ) $ 72,155 $ ( 337,502 ) Earnings (loss) per share - basic: Continuing operations $ 0.24 $ ( 0.39 ) $ 0.28 $ ( 0.48 ) Discontinued operations ( 0.01 ) ( 0.46 ) ( 0.08 ) ( 0.48 ) Net income (loss) $ 0.23 $ ( 0.85 ) $ 0.20 $ ( 0.96 ) Earnings (loss) per share - diluted: Continuing operations $ 0.24 $ ( 0.39 ) $ 0.28 $ ( 0.48 ) Discontinued operations ( 0.01 ) ( 0.46 ) ( 0.08 ) ( 0.48 ) Net income (loss) $ 0.23 $ ( 0.85 ) $ 0.20 $ ( 0.96 ) See accompanying notes to Condensed Consolidated Financial Statements. 2 Table of Contents HANESBRANDS INC. Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) (unaudited) Quarters Ended Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net income (loss) $ 81,611 $ ( 298,380 ) $ 72,155 $ ( 337,502 ) Other comprehensive income (loss): Translation adjustments 37,775 9,839 48,877 ( 48,181 ) Unrealized gain (loss) on qualifying cash flow hedges, net of tax of $1,634, $358, $1,802 and $(533),

View Full Filing

View this 10-Q filing on SEC EDGAR